The European fund management market had a bumper year in 2014, new figures show.

Last year was a record one for the European investment fund industry, with net sales reaching €634 billion ($712 billion) and total asset growth of 16 per cent, despite deflationary threats, geopolitical tensions and a sluggish economy, according to new data.

The European Fund and Asset Management Association said assets under management in Europe broke the €11 trillion mark, as reported by this publication in December last year. In its most recent study of trends amongst its 27 member associations, EFAMA said investment fund assets in Europe increased by 15.7 per cent to €11.341 trillion throughout 2014.

In overall terms, net assets of UCITS funds increased by 16.3 per cent to €7.979 trillion, while net assets of non-UCITS grew by 14.3 percent to €3.362 trillion. EFAMA said that demand for UCITs reached its highest ever level in 2014, with net sales of UCITS accounting for €472 billion.

Investor appetite for long-term UCITs resulted in another industry record, with inflows to these funds standing at €476 billion, compared to €328 billion in 2013. Bond funds attracted the second greatest share of net inflows, at €191 billion, closely followed by balanced funds, which commanded €187 billion, and equity funds, at €61 billion.

Money market funds recorded a significant decline in net outflows, which stood at €5 billion in 2014 compared to €85 billion in 2013.

Sales of non-UCITS saw a slight decrease last year, standing at €162 billion, compared to €169 billion in 2013. Special funds – those reserved to institutional investors - attracted €105 billion in net new money over the course of the year, which EFAMA attributed to high institutional demand from insurance companies, pension funds and other institutional investors. This, however, was a decrease on 2013, when institutions accounted for €154 billion of net new money.